New Delhi: The Union Cabinet on Wednesday approved the Model Tenancy Act to help overhaul the rental housing legal framework across the country and help to spur the overall growth.
In an official statement after the meeting, the Cabinet said that the Act will facilitate unblocking of vacant houses for rental housing purposes and expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
“It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth,” the statement said.
The Cabinet, chaired by the Prime Minister Narendra Modi, stated that the Model Tenancy Act for circulation to all States / Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably.
The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness, the statement said.
The Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market.